• Investment in Real Property

    • FUNDS 13.4.8

      A Fund Manager must ensure that a suitable Valuer is appointed for a Fund at all times in order to ensure the proper valuation of any Real Property that forms part of Fund Property

      Amended on (3 February, 2020).

    • FUNDS 13.4.9 FUNDS 13.4.9

      (1) The Fund Manager must ensure that the Valuer appointed under Rule 13.4.8 procures the proper valuation of all the property held within the Fund Property, on the basis of a full valuation with physical inspection including, where the property is or includes a building, an internal inspection at least once a year.
      (2) For the purposes of (1), any inspection in relation to adjacent properties of a similar nature and value may be limited to that of only one such representative property.
      (3) The Fund Manager must, subject to (4), ensure that the Valuer values the property, on the basis of a review of the last full valuation, at least every 6 months.
      (4) If any event occurs which may on reasonable grounds have a material effect on the valuation of the relevant property the Fund Manager must consult with the Valuer with a view to arranging a fresh valuation before any Units in the Fund are issued or redeemed after the date of the event.
      (5) The Fund Manager must require that any valuation by the Valuer is on the basis of a 'market value' as defined in the Constitution and Prospectus.

      • Guidance

        1. A Fund Manager should consult with the oversight provider before appointing a Valuer.
        2. The Regulator would expect the Fund Manager to define 'market value' based on an authoritative text such as the current edition of the Royal Institute of Chartered Surveyors' Appraisal and Valuation Standards ("Red Book") or similar practitioners text used by surveyors for the valuation to be a proper valuation under Rule 13.4.9(5).
        Amended on (3 February, 2020).